The former Wigan Athletic defender, who won the FA Cup with the Latics in 2013, had plotted to import 700kg worth of cocaine from Chile.
Stam, who won the Dutch title with FC Twente with ex-England boss Steve McLaren as manager, had played a “determining and coordinating role,” a court ruled.
He remained in contact with the shipment owner in Dubai with the drugs set to arrive in Rotterdam before being intercepted in Chile.
Stam, who was also aided by his brother, must both pay a €30,000 fine and have around €1.7million in criminal proceeds confiscated, according to De Telegraaf.
Ronnie Stam
News in 90 Seconds – August 13th
A judge said: “They were only concerned with making large amounts of money” after Stam and other family members were arrested on June 10 of last year.
The prosecution asked for the judge to give Stam a 13-year sentence but he was found not guilty of two of the more serious charges.
The former Dutch title-winner was instead convicted of smuggling 724kg of cocaine into the Netherlands in addition to MDMA and possession of laughing gas (nitrous oxide).
Stam admitted to being involved in a plot to smuggle 20kg of cocaine to Frankfurt from Brazil.
Stam insisted that was the extent of his involvement in the plot and confessed to regretting becoming involved with criminals.
The former footballer retired from playing back in 2016 before turning to crime.
He will have to repay £1.7m in illegally gained profits as part of his punishment in addition to the seven year prison sentence.
Stam was formerly part of the Feyenoord academy before returning to boyhood club NAC Breda in 2002.
He later joined FC Twente and won the 2009/10 Eredivisie title.
Stam came through Feyenoord’s academy before returning to NAC Breda, later winning the Eredivisie with FC Twente under Steve McClaren in 2010.
He joined Wigan that summer, making 73 appearances and featuring in their FA Cup run, though not in the final.
He went on to play for Standard Liège and NAC Breda before retiring in 2016 due to injuries.
Capped once by the Netherlands, Stam made 358 senior appearances, scoring 10 goals and providing 26 assists.